Graduate Recruitment And The Credit Crunch

By Author: Maria Tillinghous
Total Articles: 33
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It is an unwritten rule of job cutting that the most recently hired graduates should be the first ones to be let go when the financial sector is hurting. Some banks are steadfast in their efforts to hire new graduates while others, such as AIB, have eliminated programs of recruitment for the year. What kind of graduates do they seek out? How does a graduate make it to the top of the list in a job market with few jobs available? What can new arrivals hope to gain in the future?

Banks may have difficulty admitting it but, according to bank industry observers, there are fewer job openings available to graduates. Despite the pressure that some graduates are experiencing, and the fact that banks such as AIB have put a hold on recruiting efforts this year, positive signs can be seen. Even though Citi is a bank that has revealed large redundancies worldwide, the number of graduates hired for 2008 are in sync with the number for 2007. Deutsche Bank and Morgan Stanley are eagerly seeking out new graduates to hire. Even UBS, with its announcement of 5,500 redundancies, plans to go forth with a recruitment season similar to that ...
... of last year's.

Goldman Sachs is currently hiring more people for summer than they ever have before. Over 400 interns will begin work soon. In 2009, we believe approximately 75% will be offered permanent employment. Employment in commercial banking has a great outlook. Retail and commercial recruitment figures for Barclays are expected to rise by 48% globally this year. In 2009 they are looking to see another increase.

Graduates can find reassurance in the fact that banks have learned from the mistakes of the past. Rather than hiring new graduates, many banks were forced to fill jobs from accountancy during the period from 2001-02, which was the last time the financial sector recruiting was as bad as the current decline of 40%. In order to ensure that graduate jobs are available for the appropriate candidates, this error must not occur in the future.